Petrobras Reiterates No Decision Yet on Possible Change to Braskem Stake

By Jeffrey T. Lewis

SÃO PAULO--Petróleo Brasileiro, or Petrobras, reiterated that it hasn't made a decision yet on whether to increase its stake in chemical company Braskem.

The state-controlled oil company said Tuesday evening it was responding to news reports, without providing details on the reports. Petrobras said it's carrying out due diligence in the event it decides to exercise its "tag along" rights to raise its stake in Braskem, should the controlling shareholder sell its stake.

Novonor, the engineering and construction company formerly known as Odebrecht, owns 38% of Braskem's total shares, representing 50.1% of voting shares. Novonor and its creditor banks are trying to sell the stake.

Petrobras owns 36% of Braskem and 47% of its voting shares, and has a right to first refusal if Novonor agrees to sell its stake to a third party.

Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com

(END) Dow Jones Newswires

August 23, 2023 08:22 ET (12:22 GMT)

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